The Finance and Leasing Association has called for a positive and joined up approach by those regulating, underwriting and selling payment protection insurance to ensure high standards of both the product and its sale.
The FLAs members provide some 68.4bn of consumer finance annually.
Martin Hall, director general of the FLA, says: “PPI is an inherently sound and helpful product, which provides many people taking out loans with valuable protection. However, both the product and the sales process must achieve high standards. We are therefore happy to work with others to develop new initiatives which will help to ensure greater consistency of approach, openness and understanding.
“Prompt cross-industry action in response to the Financial Standards Authority findings is preferable to more regulation. This does however require the commitment and involvement of all concerned. Mis-selling can never be justified and consumers need to be able to understand clearly the cost, scope and limitations of policies.”
The FLA has commissioned Harris Interactive to carry out independent consumer research, which is close to completion and due to be published later this month. This shows a more detailed picture with a generally high level of consumer confidence in the PPI sales process.
All FLA members must comply with its lending code that, for many years, has imposed strict guidelines on selling PPI. These are currently being reinforced. If FSAs findings indicate shortcomings, the FLA will be taking action to ensure compliance.